Michael Healy-Rae (Kerry South, Independent) | Oireachtas source

I thank the Technical Group and Deputy Finian McGrath for sharing time with me. The Health (Pricing and Supply of Medical Goods) Bill 2012 is very important as the whole sector needed to be examined. There are huge difficulties in this area because the cost of drugs had risen enormously in recent years. One has only to look at the motor industry and some of the more expensive brand names of cars. When other car manufacturers upped the game they were able to provide cars that may not have had the same elaborate flagship brand as other manufacturers but the quality of the product supplied was just as good. The drugs industry is the same. One can find similar examples in the farming sector with the purchase of sprays where, in the past, one could have bought a gallon of spray costing €120 per gallon. However, due to competition one can now buy a gallon of spray that would do the same job for €30 or €40. There is no reason to believe the same is not happening with the purchase of drugs. Drugs were being priced beyond reason.

The introduction of generic substitution and reference pricing has the potential to deliver significant savings to the State. When the Government is trying to save money for the State it must be supported and complimented. I apologise to the Minister of State, Deputy Alex White, whom I meant to acknowledge at the beginning of my contribution. I congratulated him in the past but I do so again and wish him well in a very demanding role. I am pleased he is present for the debate.

We must ensure a safe and fair delivery of medicine to the people who require it. We must ensure, as Deputy Finian McGrath stated, that this is not seen as an attack by the Government on the pharmaceutical industry or on those who sell the drugs over the counter, the local pharmacies and chemist shops, who have an excellent record of working well in the communities with the local general practitioner. In the majority of cases, especially in the smaller towns, the person behind the counter of the chemist shop knows the name of the patient when he or she walks through the door; he also knew their parents and children and knows the general practitioner. That knowledge and relationship is important when it comes to the safe delivery of drugs to patients who require them. We must ensure this is not seen as an attack on anybody, including the pharmaceutical companies. I recently visited an excellent pharmaceutical premises, in Killorglin, County Kerry which in recent years has invested huge sums in its factory. The company provides much needed jobs and drugs which are being shipped worldwide. I know it is not the Government's intention to endanger those jobs or to come done on the pharmaceutical industry but in life one has to modernise and economise and look at things in a different way when it comes to saving money. In this regard the drugs industry must be tackled in the same way as any other industry.

I compliment all those taking care of patients who need drugs, be it the local general practitioners who look after the elderly, or family resource centres, which are a new development, which take care of the elderly and young people in the communities. We have an ageing population which brings health difficulties which may not have been as prevalent in the past. It also bring financial difficulties. One has to look at the bigger picture and hope they can be taken care of and the necessary drugs provided to maintain them for a long, healthy and happy life.

In regard to reference pricing, section 24 of the Bill provides for the setting of a price for a group of interchangeable medicinal products in regard to the listed items which fall within the group. It also provides for the regular review of the reference price for a group of interchangeable medicines by the HSE, and it outlines the criteria to be taken into account by the HSE when it is setting or reviewing a reference price. This is a very important point because one would always be concerned about a major purchaser of drugs, such as the HSE, where huge amounts of money change hands. It would be important to know if in the past it got value for money or if there were big savings to be made owing to a lack of clarity on pricing structures with the result that the HSE paid too much for the drugs supplied every day. As the HSE is a huge procurer of drugs in all the hospitals and all the institutions that provide care it is important that the utmost prudence and pricing management is strictly adhered to. As there is an onus of responsibility on those who purchase drugs for the HSE, the legislation will be of major assistance in enabling them get a better deal for the Government and the taxpayer, which is very important. I hope those people who work for the HSE in the buying departments and who deal with large sums of money every day will see the legislation as enabling them to be tougher and stricter about the amounts they pay for certain products.

I wish the Minister well in the future. While people may have different issues with certain parts of the legislation before us, overall it is prudent and timely for us to review the pricing and supply of medical goods. If it results in solid savings for the State, that is to be welcomed.

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